Invesco Ltd. (IVZ) Cash Flow Statement

The cash flow statement shows that operating cash flow has been consistently positive, even in quarters with negative net income, such as 2025Q4 when OCF was $455.8M against a net loss of $1.1B. This suggests that non-cash charges, like the impairment, are masking underlying cash generation. The OCF/NI ratio of 1.92 in 2026Q2 further underscores that earnings are backed by strong cash conversion, which may support organic growth initiatives and debt servicing.

The quarterly swings in purchases and sales of investments suggest that Invesco is actively managing its securities portfolio, likely to optimize yield or manage liquidity. The net effect over the period appears to be a slight net seller, which may indicate a strategy to fund other activities or reduce exposure. This activity, combined with the lack of a clear trend, suggests a tactical approach rather than a strategic shift, and investors should monitor whether this generates returns or merely churns the portfolio.

Invesco's cash flow statement includes a 'Loan Loss' line item that appears to be a provision expense, but given the company's asset management focus, this likely relates to investment-related losses or contingent liabilities rather than traditional lending. The large and volatile provisions, such as $1.1B in 2025Q3, may reflect mark-to-market losses on investments or credit impairments, which are not core to the business model. This warrants closer inspection to understand the nature of these provisions and their impact on cash flow.

The consistency of dividend payments, even during the 2025Q4 loss quarter, suggests that management prioritizes dividend stability, which is a key consideration for income-focused investors. Buybacks are modest and variable, with a peak of $69.2M in 2026Q1, indicating a cautious approach to capital return beyond dividends. Given the negative TTM net income, the sustainability of these dividends relies on the strength of operating cash flow, which has remained positive, but investors should monitor whether cash generation can continue to cover these payments.

The cash flow statement does not include deposit inflows or outflows, which is consistent with Invesco's business model. The company's cash flow is driven by investment management fees, which are reflected in operating cash flow. The recent record net long-term inflows of $67 billion, as noted in the company intelligence, are not directly visible in the cash flow statement but are expected to translate into higher fee income over time. Investors should focus on AUM trends and fee yields rather than deposit metrics.